Stock Market Update

[BRIEFING.COM] The broader market mostly held its modestly higher lines after the Fed released its October Beige Book at the bottom of the hour. The report showed that overall economic activity was little changed from the previous period, with three Districts seeing slight-to-moderate growth, five reporting no change, and four noting some softening. Consumer spending, especially on retail goods, has cooled lately, though auto sales got a lift in some areas from strong EV demand ahead of a federal tax credit expiration at the end of September.

Outlooks for growth varied by region and sector. A few Districts said sentiment had improved, with some contacts expecting stronger demand over the next 6–12 months. Others, however, still pointed to ongoing uncertainty that could drag on activity. One District flagged the potential downside from a prolonged government shutdown.

• Employment: Job levels were mostly steady in recent weeks, with softer labor demand across many regions and sectors. Several Districts noted more layoffs and attrition, citing weaker demand, economic uncertainty, and in some cases, rising investment in AI technologies.
• Wages: Pay increased modestly to moderately across most Districts, though labor and cost pressures intensified due to higher employer health insurance expenses.
• Prices: Inflation picked up again during the period, with faster input cost growth tied to higher import prices and rising costs for services like health care and tech. Tariff-related price pressures also came up, though some companies held prices steady to avoid losing customers.

Currently, the yield on the benchmark 10-yr Treasury note is up about a single basis point at 4.045%.